SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
227.11 USD
-6.42 (-2.75%)
227.3 USD
+0.19 (+0.08%)
Overall CRM gets a fundamental rating of 6 out of 10. We evaluated CRM against 276 industry peers in the Software industry. CRM scores excellent on profitability, but there are some minor concerns on its financial health. CRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CRM was profitable.
- CRM had a positive operating cash flow in the past year.
- CRM had positive earnings in each of the past 5 years.
- Each year in the past 5 years CRM had a positive operating cash flow.
1.2 Ratios
- CRM has a better Return On Assets (7.59%) than 77.90% of its industry peers.
- CRM has a Return On Equity of 12.03%. This is in the better half of the industry: CRM outperforms 75.72% of its industry peers.
- CRM has a better Return On Invested Capital (10.05%) than 84.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.78%.
- The 3 year average ROIC (5.83%) for CRM is below the current ROIC(10.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.05% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
1.3 Margins
- CRM's Profit Margin of 17.91% is amongst the best of the industry. CRM outperforms 80.43% of its industry peers.
- CRM's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 22.03%, CRM belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
- In the last couple of years the Operating Margin of CRM has grown nicely.
- The Gross Margin of CRM (77.73%) is better than 75.00% of its industry peers.
- CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.03% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% |
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
- Compared to 1 year ago, CRM has less shares outstanding
- CRM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CRM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.83 indicates that CRM is not in any danger for bankruptcy at the moment.
- CRM has a Altman-Z score of 4.83. This is in the better half of the industry: CRM outperforms 72.10% of its industry peers.
- The Debt to FCF ratio of CRM is 0.65, which is an excellent value as it means it would take CRM, only 0.65 years of fcf income to pay off all of its debts.
- CRM has a Debt to FCF ratio of 0.65. This is in the better half of the industry: CRM outperforms 77.54% of its industry peers.
- CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- CRM has a Debt to Equity ratio (0.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.83 |
ROIC/WACC0.92
WACC10.92%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
- CRM's Current ratio of 0.98 is on the low side compared to the rest of the industry. CRM is outperformed by 75.72% of its industry peers.
- CRM has a Quick Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
- CRM has a worse Quick ratio (0.98) than 74.64% of its industry peers.
- CRM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
- The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
- The Revenue has grown by 8.41% in the past year. This is quite good.
- CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
EPS 1Y (TTM)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
3.2 Future
- Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.75% on average per year.
- CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.22%
Revenue Next 3Y9.9%
Revenue Next 5Y9.51%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.71 indicates a rather expensive valuation of CRM.
- Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 74.64% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, CRM is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.27 indicates a rather expensive valuation of CRM.
- Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 76.09% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 80.80% of the companies in the same industry.
- CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 81.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 17.7 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of CRM may justify a higher PE ratio.
- A more expensive valuation may be justified as CRM's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)1.19
PEG (5Y)0.71
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.64%, CRM is not a good candidate for dividend investing.
- CRM's Dividend Yield is rather good when compared to the industry average which is at 0.52. CRM pays more dividend than 89.49% of the companies in the same industry.
- With a Dividend Yield of 0.64, CRM pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
- CRM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 21.86% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.86%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
227.11
-6.42 (-2.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners84.48%
Inst Owner Change-0.06%
Ins Owners2.57%
Ins Owner Change-0.09%
Market Cap216.21B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.66
Price Target332.22 (46.28%)
Short Float %1.73%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.16%
Min EPS beat(2)3.73%
Max EPS beat(2)12.58%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)0.37%
Max EPS beat(4)12.58%
EPS beat(8)7
Avg EPS beat(8)3.66%
EPS beat(12)11
Avg EPS beat(12)5.61%
EPS beat(16)15
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-0.14%
Revenue beat(16)3
Avg Revenue beat(16)-0.22%
PT rev (1m)0.55%
PT rev (3m)-2.89%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)3.42%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 17.27 | ||
| P/S | 5.36 | ||
| P/FCF | 16.77 | ||
| P/OCF | 16.01 | ||
| P/B | 3.6 | ||
| P/tB | 53.08 | ||
| EV/EBITDA | 17.7 |
EPS(TTM)11.52
EY5.07%
EPS(NY)13.15
Fwd EY5.79%
FCF(TTM)13.55
FCFY5.96%
OCF(TTM)14.18
OCFY6.24%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.19
PEG (5Y)0.71
Graham Number127.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROCE | 12.04% | ||
| ROIC | 10.05% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 114.64% | ||
| OM | 22.03% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% | ||
| FCFM | 31.98% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
ROICexc(3y)7.18%
ROICexc(5y)4.68%
ROICexgc(3y)84.54%
ROICexgc(5y)53.64%
ROCE(3y)6.99%
ROCE(5y)4.55%
ROICexgc growth 3Y144.43%
ROICexgc growth 5Y51.1%
ROICexc growth 3Y136.01%
ROICexc growth 5Y54.45%
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 17.92% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 38.61 | ||
| Cash Conversion | 110.06% | ||
| Profit Quality | 178.55% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.83 |
F-Score8
WACC10.92%
ROIC/WACC0.92
Cap/Depr(3y)19.53%
Cap/Depr(5y)21.06%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.49%
Profit Quality(3y)1155.13%
Profit Quality(5y)786.34%
High Growth Momentum
Growth
EPS 1Y (TTM)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y14.75%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year9.34%
Revenue Next 2Y10.22%
Revenue Next 3Y9.9%
Revenue Next 5Y9.51%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year41.2%
EBIT Next 3Y19.35%
EBIT Next 5Y14.79%
FCF growth 1Y46.33%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y40.37%
OCF growth 3Y29.7%
OCF growth 5Y24.76%
SALESFORCE INC / CRM FAQ
What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CRM.
What is the valuation status for CRM stock?
ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.
Can you provide the profitability details for SALESFORCE INC?
SALESFORCE INC (CRM) has a profitability rating of 8 / 10.
What is the valuation of SALESFORCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 19.71 and the Price/Book (PB) ratio is 3.6.
How financially healthy is SALESFORCE INC?
The financial health rating of SALESFORCE INC (CRM) is 6 / 10.